Blogs
Understanding Beneficial Ownership Information (BOI) for Businesses
Thomas Gogarty | Feb 08 2024 15:28
In an ever-changing regulatory environment, it’s crucial for businesses to stay ahead of new requirements that could impact their operations. Starting in 2024, a significant regulatory update in the form of Beneficial Ownership Information (BOI) reporting will come into effect. This mandate aims at increasing transparency and curbing illicit activities by requiring detailed disclosures about the beneficial owners of corporations and limited liability companies (LLCs). Thomas P. Gogarty Jr. CPA is committed to guiding businesses through these new reporting obligations to ensure compliance and operational integrity.
What is Beneficial Ownership Information (BOI)?
The BOI reporting requirement is designed to shed light on individuals who have significant control or ownership stakes in businesses, directly or indirectly. This initiative targets enhancing the transparency of business ownership structures to prevent misuse and promote accountability.
Essential Information for BOI Reporting
Businesses subject to this new mandate will need to compile and report comprehensive information about their beneficial owners, which includes:
- The legal names, dates of birth, home addresses, and identifying numbers (from licenses, state IDs, or passports) of beneficial owners.
- A current image of the owners' identification documents.
- The reporting company’s legal and trade names, jurisdiction of incorporation or formation, and taxpayer identification number.
- Beneficial owners holding a FinCEN identifier can provide this instead of the detailed personal information.
Filing Deadlines to Keep in Mind
It's imperative for businesses to adhere to the following BOI reporting timelines to maintain compliance:
- Existing Companies: The window for filing is from January 2024 to January 2025. This applies to most S corps, C corps, and LLCs, except those qualifying for exemptions.
- Newly Established Companies: These entities are required to file within 90 days of their formation.
- Updates: Businesses must report any changes to the provided information, such as address changes, name changes, or updated identification documents.
Partnering with Thomas P. Gogarty Jr. CPA for BOI Reporting
While the BOI reporting is distinct from our usual suite of tax and accounting services, we're is here to assist your business in navigating this new requirement efficiently. Please be aware that our availability for BOI reporting assistance is limited during the tax season from February through April, so early engagement is recommended.
We encourage businesses to delve deeper into the BOI reporting requirements and to reach out for our expert assistance in managing this process. Our goal is to support your business in achieving compliance with minimal hassle, allowing you to focus on your core operations.
Thank you for your partnership with Thomas P. Gogarty Jr. CPA. We are eager to support your business through the BOI reporting process and beyond, ensuring your continued success in the dynamic business landscape.
